Shares in Vodafone (LON:VOD) have been little changed this morning as the blue-chip group updated investors on its performance, reporting a drop in revenue for the quarter ended June 30 amid accounting changes and forex headwinds. The telecoms giant, however, nevertheless reaffirmed its full-year guidance.
As of 08:39 BST, Vodafone’s share price was standing at 177.67p, flat in percentage terms. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.25 percent lower at 7,689.83 points. The group’s shares have lost just under a fifth of their value over the past year, as compared with about a 3.3-percent rise in the Footsie.
Vodafone posts results
Vodafone announced in a statement this morning that its total revenue had dropped 4.9 percent to €10.9 billion in the three months ended June 30, reflecting the adoption of the IFRS 15 as well as currency headwinds. The telco’s first-quarter organic service revenue, however, grew 0.3 percent on an IAS 18 basis, or 1.1 percent based on IFRS 15.
Despite the drop in total revenue, Vodafone has reaffirmed its full-year guidance. Going forward, the blue-chip telco continues to expect to deliver underlying organic adjusted EBITDA growth of between one and five percent, as well as free cash flow pre-spectrum of at least €5.2 billion.
“The Group’s organic service revenue growth slowed during the first quarter, in line with expectations,” Vodafone’s outgoing chief executive Vittorio Colao commented in the statement.
India merger update
Vodafone further updated investors on the group’s merger in India where cut-throat competition has forced the company to seek a tie-up of its unit with local provider Idea Cellular. The telco said that it has now received conditional approval from the Department of Telecoms and is aiming to close the merger before the end of August.